First Time Home Buyer Grants – Down Payment Assistance

June 4th, 2009

With the help of first time home buyer grants, new home owners can quickly get the money they need for their mortgage down payment. Buying your first home is an exciting time, but most people underestimate the cost. Owning a home requires a lot more than just a monthly payment. You’ll need cash for your down payment, thousands of dollars to closing costs, taxes, points, and of course your moving expenses.

It all adds up quickly, and even though you may have been saving a lifetime to purchase your new home, you don’t want to be caught short at the closing table. First time home buyer grants can help you avoid that situation and a lot more.

Who Can Get First Time Home Buyer Grants?

These government funded programs are available for anyone over the age of 18 to apply for. The exact qualification requirements will vary from offer to offer, but generally there is no credit requirements and no income verification needed. That’s because first time home buyer grants are not loans — this is cash that is provided to individuals that never has to be repaid.

Typically the terms of the offer require you own your new home for at least three years, but that isn’t generally an issue for most people. If it turns out you have to move and sell you home within three years, the profit from the sale of your house can go towards repayment. But this rule is generally applied simply to prevent real estate investors from obtaining these cash grants to flip houses with government money.

Your local government is the most likely agency providing first time home buyer grants because they bare the most interest in helping you buy your new home. The benefit on their part is to keep the housing industry stable in your community, help expand development of neighborhoods, and provide incentives for new business to move into the area. By providing individuals with these funds, the government makes out in the long-run with increased population, taxes, and housing values.

But because there’s no limit on the number of programs you can apply for, you’ll also want to consider any state government funding programs that are available for first time buyers. They too can provide financial assistance and may be able to give you as much as $20,00 towards the purchase of your new home. That’s money that you get to put towards instant home equity and keep more of your hard earned cash in your pocket.